Indian automotive market is becoming increasingly attractive for foreign automakers, and Volkswagen is no exception. The German production carmaker is currently in discussions about a potential partnership to manufacture cars in India, according to Chief Financial Officer Arno Antlitz. He stated that the conversations are progressing well and there are clear opportunities for cooperation in the passenger car segment.
While details were not disclosed, Antlitz mentioned this during the Automotive Europe conference in Munich. He highlighted the potential in the Indian market, despite the challenges of making profits due to the demand for cheaper cars by buyers. The company currently operates two factories in India, producing about one percent of their global vehicle deliveries last year.
Volkswagen’s confidence in India was echoed by Škoda, which announced plans to introduce a new model of a compact sports utility vehicle tailored for the Indian market in the first half of next year. This move further solidifies Volkswagen’s position as a major player in India’s automotive industry.
In addition to its manufacturing presence, Volkswagen has also secured a contract with Indian automaker Mahindra to use key electrical components from Volkswagen’s open platform for electric vehicles. This partnership will help Mahindra expand its electric vehicle offerings and allow Volkswagen to tap into India’s growing demand for electric vehicles.
Overall, there is optimism about the potential for growth and partnerships in India’s automotive market, despite regulatory uncertainty between major players such as the USA and China. With strategic positioning and strong partnerships, Volkswagen is well-positioned to capitalize on opportunities and expand its presence in this exciting region of Asia-Pacific markets
